Lytx Inc., a San Diego-based global leader in video telematics, has signed an agreement to be acquired by Chicago-based private equity firm GTCR.
The deal, expected to close in the first quarter, is an all-cash transaction of more than $500 million that will help power the next chapter in Lytx’s growth as the innovator and leader of video telematics and safety services for commercial trucks and public sector transportation.
Lytx created the category in 1998, and has since developed a market-leading range of subscription-based services that help improve the safe fleet driving behavior for more than 1,400 clients worldwide. Its flagship service offering — the DriveCam program — combines the intelligent video capture of driving events, precise and personalized data-backed coaching insights, fleet tracking, fuel management and more to help improve driver behaviors, protect and save lives, and reduce operational expenses.
“With an unrivaled set of solutions, services and blue chip clients, Lytx is already driving its strong vision of expanding the video telematics category and its clear market leadership is proof that the team can continue to record stellar results,” said GTCR Managing Director Phil Canfield.
In 2015, Lytx drove nearly 80 percent year-over-year growth in the number of subscriptions sold, totaling more than 300,000 subscriptions. In a January 2016 report, industry research firm Frost & Sullivan reported Lytx market share at 66 percent, more than four times the share of its nearest competitor.
“Over this past year, video telematics pivoted from being a nice-to-have to a must-have among commercial and public sector fleets,” said Lytx Chairman and CEO Brandon Nixon. “This new chapter will allow us to significantly expand the portfolio of services delivered to our growing installed base, and give us the room to deliver a broader variety of actionable data to help our clients solve tough business problems.”
“Brandon and the Lytx team have subscribed to a discipline of focus enhanced by market-leading innovation, and that’s a potent combination in a growth industry like telematics,” added Canfield.
The Lytx executive leadership team will continue in their roles, and Nixon will remain chairman of the board.